Alibaba Achieves Best Expectations As Pandemic Drives Increased Digital Purchases

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Alibaba Group Holding Ltd. BABA,
+ 0,53%
beat earnings and income expectations Thursday for its first fiscal quarter, and its shares rose 0.5% in pre-market trading. The company reported net profit of RMB 47.59 billion ($ 6.74 billion), or RMB 17.36 per share, compared with RMB 21.26 billion, or RMB 8.06 per share, in the quarter of the previous year. Alibaba reported adjusted earnings per US custodian share of RMB14.82, down from RMB12.55 a year earlier and before the FactSet consensus, which called for RMB13.82. Alibaba’s revenue for the June quarter reached 153.75 billion RMB from 114.92 billion RMB a year earlier and exceeded the FactSet consensus of 148 billion RMB. “We were well positioned to capture the growth of the ongoing digital transformation, which has been accelerated by the pandemic, both in consumer and business operations,” Chief Executive Officer Daniel Zhang said in a statement. Alibaba had 742 million annual active customers in its retail markets in China in the June quarter, up 16 million from the March period. The company revealed that the gross volume of merchandise for physical goods online in its Tmall marketplace increased by 27% in the June quarter, “with all major categories increasing at similar or faster rates from the quarter of December 2019, before the start of the COVID-19 pandemic. . Alibaba said Tmall is benefiting from both increased order frequency and an influx of new customers. Alibaba shares have gained 20% in the past three months, the S&P 500 SPX,
-0,44%
increased by 14% and like the KraneShares CSI China Internet ETF KWEB,
-1,34%
added 29%.

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